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Why Fringe Benefits are Important?

Hanna Wilson, HR tech Outlook | Wednesday, March 31, 2021

Companies now provide student loans and educational assistance to workers and their families. Employee retention is aided by fringe benefits, which attract workers and help the employer share their costs. Many businesses will also pay your cable and phone bills, making it easier to communicate with the workers.

Fremont, CA: Fringe Benefits are monetary compensation given to workers in addition to their wages and salaries. Employees weigh work opportunities based on the fringe benefits they will receive, according to research. Fringe benefits account for 30% of total compensation. Fringe benefits may be a good indicator of job satisfaction and the overall employee retention program.

Nowadays, fringe benefits include things like gym memberships and free meals, in addition to dental checkups and insurance. Employees believe that these benefits are necessary for their way of life and help them save money. Many Internet giants and businesses provide a wide range of fringe benefits for employees, which makes them appealing to current and prospective employees.

What is a Fringe Benefit?

Employees receive fringe benefits as compensation from their employers or as a privilege for being a part of the company. They are included in a company's annual package and allow workers to use the company's services at a reduced rate.

The main parts of fringe benefits include-

Dental and health checkup and insurance

Privilege to club, gyms, and resorts

Employee share in the equity of the company

Housing allowance

Sick days

Free meals and drinks

Company car

Vacation pay or vacation

Performance bonuses at the end of the year

Companies now provide student loans and educational assistance to workers and their families. Employee retention is aided by fringe benefits, which attract workers and help the employer share their costs. Many businesses will also pay your cable and phone bills, making it easier to communicate with the workers.

Some fringe benefits are required by law, and some are provided to employees by the company for the convenience of the employees and the company as a whole. The benefits provided to employees are not completely tax-free for the corporation. Some benefits are also taxable to the corporation, while others, such as those listed in 401(k), are subject to deferred taxation.

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